The 38 Studios Debacle….Tax Payers Money Well Spent

This story caught my attention earlier this week when it was reported that Curt Schilling’s gaming studio, 38 Studios, could not pay their employees this week and defaulted on their tax-payer funded loan to Rhode Island.

The more I read about this story, the more it inflames my nerd rage. First of all, where does the line start to receive a $75 million guaranteed loan to fund a video game company? Because if an ex-WoW player like Curt Schilling, with zero game industry experience can get one, I sure as hell am more qualified than he is. The guy played Ultima Online, some EQ and WoW. If that’s all that’s needed, then I’m extremely overqualified. Cash please.

Second, since when did State governments start issuing loans to just any company? Isn’t that the job of banks and investment firms? Why is Rhode Island taking tax payer money and funding a video game company?

Now I know governements give out loans all the time, don’t think I’m naive, however I was under the impression such loans were given to companies that were in certain industries. Such as energy or construction, something that would have a positive effect on the state directly and it’s citizens. A video games company has no impact what so ever.

To add insult to injury, we then have 38 Studio’s asking for even more money so they can finish their MMORPG. I don’t have anything against Curt, he’s one of my favorite player’s of all time and I’m a Red Sox fan, but get the f*ck out. Are you kidding me?

I don’t want to see anyone not get paid, but that’s the risk of working for a start-up company. Tax payers should not flip the bill if the company cannot make money, sorry, but that’s how it works.

Personally I’d like to see every government official who approved this loan be fired or step down, including the Governor. So far only Keith Stokes, the executive director of the RIEDC and architect behind the $75 million loan that brought the studio to the state from Massachusetts, has resigned.

1 Comment

Kurt is a huge republican and aren’t republicans against this “big government” stuff? The guy doesn’t even know what he stands for… And pretty interesting how they sold roughly 1M copies at $60 each and can’t even make a $1.1M or pay their employees. Copernicus gets my vote for the biggest MMO debacle in the history of MMOs. Don’t worry, it will happen. This kind of terrible press guarantees many won’t even give the game a chance whenever it finally DOES come out.